Ac 505 Project a Instructions

COURSE PROJECT A INSTRUCTIONS You select bonnie been engage as a new focus trainee by Earrings Unlimited, a distri besidesor of earrings to various retail outlets located in obtain m every(prenominal)s across the country. In the past, the attach to has do very puny in the way of budgeting and at current times of the category has experienced a shortage of cash. Since you argon well adroit in budgeting, you have decided to gain comprehensive budgets for the upcoming second quarter in orderliness to show management the benefits that can be gained from an integrated budgeting program. To this end, you have worked with accounting and early(a) areas to gather the information assembled below. The company sells many styles of earrings, but all are change for the same price$10 per pair. unquestionable sales of earrings for the last three months and budgeted sales for the nigh cardinal months follow (in pairs of earrings): The concentration of sales before and during may is collectable to Mothers Day. Sufficient inventory should be on turn at the end of each month to supply 40% of the earrings sold in the spare-time activity month. Suppliers are paid $4 for a pair of earrings. One-half of a months purchases is paid for in the month of purchase; the other half is paid for in the pursual month. All sales are on credit, with no discount, and collectable within 15 days.

The company has found, however, that only 20% of a months sales are collected in the month of sale. An spear carrier 70% is collected in the undermentioned month, and the remaining 10% is collected in the second month following sale. gravid debts ! have been negligible. Monthly operating expenses for the company are inclined below: Insurance is paid on an annual basis, in November of each year. The company plans to purchase $16,000 in new equipment during may and $40,000 in new equipment during June; both purchases will be for cash. The company declares dividends of $15,000 each quarter, payable in the first month of the following quarter. A listing of the companys ledger...If you want to get a undecomposed essay, order it on our website: OrderCustomPaper.com

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